Stock Market Update for the Trading Week Ended May 2
- The Morningstar US Market Index increased by 2.97%.
- Industrials were the leading sector, climbing 4.33%, followed by technology at 3.92%.
- Energy dipped by 0.24%, while healthcare saw a modest increase of 0.58%.
- Large-cap stocks rose by 3.01%, mid-cap stocks by 2.76%, and small-cap stocks by 3.17%.
- Growth stocks surged 4.03%, blend stocks went up 2.59%, and value stocks increased by 1.94%.
- The S&P 500 witnessed a gain of 2.92%, with the Nasdaq increasing by 3.42%.
- Among the 853 US-listed companies monitored by Morningstar, 677 (or 79%) showed gains, two remained unchanged, and 174 (20%) recorded declines.
Other Markets
- Yields on 10-year US Treasury notes rose to 4.33%, up from 4.29%.
- Yields on 2-year US Treasury notes increased to 3.83%, up from 3.74%.
- West Texas Intermediate crude oil prices fell by 7.31%, settling at $58.55 per barrel.
- Comex Gold prices dropped 2.62%, finishing at $3,225.00.
Top Stock Gainers
VNET Group, GDS Services, Tenet Healthcare, Clarivate, and Carrier Global emerged as the top gainers among US-listed stocks according to Morningstar analysts.
- VNET led with a 31.60% increase, though it has dropped 10.04% over the last three months. Over the past year, the no-moat company has risen 260.34% and closed the week at $7.08, a 77% premium to its fair value of $4.00.
- GDS followed with a 21.38% return and is up 205.94% year-over-year, closing at $28.10, just 3% below its fair value estimate of $29.00.
- Tenet, with a narrow moat, gained 21.24%, ending the week at $148.03 and valuing it 7% below its fair estimate of $160.00.
- Clarivate experienced a 19.34% rise, yet it remains down 38.18% over the past year, closing at $4.32, a 21% discount to its fair value.
- Carrier Global’s stock increased by 19.10%, with a 15.50% year-over-year gain, closing at $71.53 and valued 35% above its fair price estimate of $53.00.
Top Stock Losers
Block, Becton, Dickinson and Company, Pilgrim’s Pride, Bloom Energy, and Televisa were the worst performers surveyed by Morningstar analysts.
- Block experienced a significant decline of 19.90%. The narrow-moat, 4-star company is still up 35.61% over the last three months, closing at $46.53, which is a 39% discount to its fair value of $76.00.
- Becton, Dickinson and Company fell by 17.70% this week, having increased 31.11% over the past three months, ending at $168.78 with a 48% discount to its fair value of $325.00.
- Pilgrim’s Pride dropped 13.84% this week, but remains up 49.90% year-over-year, finishing at $46.14—a 15% premium to its fair value of $40.00.
- Bloom Energy experienced a 13.15% decrease this week, with stocks trading at $16.44, a 10% premium over its fair value of $15.00.
- Televisa rounded out the worst performs, dropping 11.56% and closing at $1.76, reflecting a 47% discount to its fair value estimate of $3.30.
Highlights of This Week’s Market and Investing Events
Monday, May 5: ISM Services PMI data, earnings announcements from Ford Motor and Palantir Technologies.
Tuesday, May 6: Earnings from Energy Transfer.
Wednesday, May 7: Federal Open Market Committee meeting, Consumer Credit statistics, and earnings from Uber Technologies and Walt Disney.
Thursday, May 8: Initial Unemployment Insurance Claims report, earnings from Groupon, Occidental Petroleum, and Paramount Global.
